Statement by Troika Australia-NL-UK during Open Working Group on Sustainable Development Goals (6th session)

Sustainable Development Goals Open Working Group, 6th session, 10 December 2013
Means of Implementation (science and technology, knowledge-sharing and capacity building);
Global partnership for achieving sustainable development

Troika: Australia, The Netherlands and United Kingdom

International development cooperation is changing rapidly. There is a growing
recognition of the importance of a new global partnership with robust
accountability, effective measurement of results and policy coherence for
development. New actors, new sources of finance and new avenues of cooperation
are increasingly important. Overseas Development Assistance is a decreasing
proportion of global development flows, with developing countries becoming
donors, domestic resources growing rapidly and businesses expanding into new
markets. For other countries however, ODA will remain crucial for their
development in the foreseeable future. These changes should be taken into
account as we reflect on how to implement the post-2015 development agenda. We
welcome the TST papers on this topic.

1) Key to the post 2015 development agenda is to move to a new global
partnership that is based on shared responsibility and respects and reflects
contemporary realities. As the TST paper stated, the MDG partnership was based
on a "donor-recipient" concept which played an important role in making progress
towards the MDGs but which is now largely outdated. All parties need to be
contributors to success and it should be recognized that capabilities,
capacities and actions required at different stages of development differ
between countries, but that they also can evolve. The partnership should be
built on the enduring principles of equity, sustainability, transparency and
policy coherence for development.

2) All potential financial flows from national and international, as well
as public and private sources should be included. The Monterrey framework on
Finance for Development (FfD) should be the basis for the discussions on
financial flows. We need to focus on mobilization as well as the effectiveness
and access to the finance that is available for development.

3) The comparative importance of ODA in total FfD flows has declined
relative to that of private flows such as Foreign Direct Investments, trade and
remittances, except in the lowest income countries and conflict affected states.
ODA remains very much needed in the poorest countries and for financing global
public goods. Many Least Developed Countries (LDCs), Small Island Developing
States (SIDS) and Land Locked Developing Countries (LLDCs) still rely heavily on
ODA for their development investments. ODA will continue to play an important
role for these countries. ODA worldwide should be targeted to those people,
countries and sectors where the need or impact is greatest. Efforts to meet ODA
commitments should be made. Aid effectiveness should be part and parcel of our
approach, including strong and coherent multilateral organizations. We welcome
the statement in the task team paper that a data revolution for sustainable
development is necessary.

4) We also need to be more specific on the potential role of the private
sector in sustainable development. It is important to acknowledge the private
sector is the engine of economic growth and job creation in most developing
countries and most technology transfer occurs through private investment.
Governments can partner with the private sector to grow investments where it is
needed most, such as in sustainable infrastructure investment. Governments can
also partner with business to maximize the positive social and environmental
benefits of private sector operations. By focusing on international corporate
social responsibility in their production processes, and including social and
environmental costs in their management plans, business can play a pioneering
role in bringing about change at the international level. Equally, a robust and
secure domestic environment will promote foreign direct investment, encourage
entrepreneurship and grow local business. It is encouraging to see that
developing countries with sound policies have gained access to international
capital markets. Continued good governance is needed in both developing and
developed countries to manage the risks involved with external debt.

5) As Erik Solheim said, more resources for sustainable development can be
stimulated by building greater coherence between public and private flows of
money. Innovative ways of cooperation and financing are needed. Increasing the
possibilities to use public finance to catalyze private sector investments can
therefore be an effective and sustainable method for financing development.
Tailored, innovative approaches that build investor confidence and reduce risk
can help mobilize private sector’s finance for sustainable economic growth.
Measures such as Public Private Partnerships, equity funds, guarantees,
co-investment, concessional finance or subsidies that enhance returns can all
act to encourage investment in sustainable development activities. We should
also promote inclusive access to finance, including economic opportunities for
women. The WBG Women, business and the law report says over one hundred
countries have regulations that form obstacles to the economic participation of
women. This should be addressed.

6) Developing countries should be supported in obtaining financial
independence in the long-term. Increasing domestic public resources and
improving public finance management are essential. Some developing countries
have good opportunities to increase tax collection, tackle tax avoidance, reduce
illicit flows and optimize royalty income from extractive industries. Other
developing countries do not yet have the capacity nor have the economic position
to increase their domestic public resources. For all developing countries
improvement of an enabling business environment and improving access to
financial services for all can further support the increase of domestic
resources. The international community should provide support for capacity
building, addressing illegal financial flows, debt relief and improving debt
sustainability to support the potential contribution of domestic resources to
sustainable development for all.

7) Operational multistakeholder partnerships around the new goals are
crucial. We should start to think carefully about how to pull together existing
partnerships and build the necessary new partnerships. We commend the efforts of
the United Nations in this regard. Mainstreaming around a goal has mobilized new
funds and ideas in the past. Inspiring examples include the GAVI Alliance,
Sustainable Energy for All, Sanitation and Water for All and initiatives around
the food/energy/water nexus.

8) An open, fair and sustainable trading system is needed. This will give
countries better opportunities for new sources of sustainable income in the long
term. Breaking non-tariff barriers, improving access to special and differential
treatment for LDCs and full duty-free and quota-free access for LDC exports are
crucial. However, certain economic conditions have to be fulfilled before a
country can fully reap the benefits of free trade. Therefore, some countries
will need additional support to improve their institutions and business
environment to better facilitate their participation. We strongly welcome the
agreement reached in Bali on a package covering trade facilitation, agriculture
and development on 7 December. The Bali package will ensure that cost of
international trade will be reduced and it helps developing countries to further
integrate in global value chains. We welcome the development outcomes from Bali
and look forward to further work in the WTO to build on the Bali outcomes,
including continuing to pursue further trade liberalizing outcomes that will
benefit developing countries.

We reiterate the potential for effective and diverse partnerships for
sustainability and eliminating poverty, including governments, international
organizations, civil society and the private sector.